CHANCERY DIVISION
Strand, London, WC2A 2LL |
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B e f o r e :
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The Football Association Premier League Limited |
Claimant |
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Patrick O'Donovan Barclays Bank PLC |
Defendants |
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No attendance by any other party
Hearing dates: 18th January 2017
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Crown Copyright ©
Chief Master Marsh:
CPR 15.11
(1) Where
(a) at least 6 months have expired since the end of the period for filing a defence specified in rule 15.4;
(b) no defendant has served or filed an admission or filed a defence or counterclaim; and
(c) the claimant has not entered or applied for judgment under Part 12 (default judgment), or Part 24 (summary judgment),
the claim shall be stayed....
(2) Where a claim is stayed) under this rule any party may apply for the stay to be lifted.
The Amendment
i) The amended claim shows reasonable grounds and has a real prospect of success.
ii) The claim is at an early stage and the amendment in relation to the New Logos and Graphics could not have been made earlier than November 2016.
iii) There is no prejudice to the first defendant because he has opted not to serve a defence.
"Under the previous rules, an amendment duly made, with or without leave, took effect not from the date when the amendment was made, but from the date of the original document which it amended. .. Thus, when an amendment was made to the writ, the amendment dated back to the date of the original issue of the writ and the action continued as if the amendment had been inserted from the beginning: "the writ as amended becomes the origin of the action and the claim thereon endorsed is substituted for the claim originally endorsed" (per Collins MR in Sneade v Wotherton etc [1904] 1 KB 295 at 297)"."
"Although amendments take effect from the date of the original document which it amended (see para 17.3.4 above) there is no absolute rule of law or practice which precludes an amendment to rely on a cause of action accrued only after the date of the original claim in circumstances where (but for the amendment the claim could fail (Maridive & Oil Services SAE v CNA Insurance Co (Europe) Ltd [2002] EWCA Civ 369."
This is followed by a reference to British Credit Trust Holdings v UK Insurance Ltd [2004] EWHC 2404 Comm where the claimant was permitted to amend the claim to add a claim for declaratory relief in order to seek declaratory relief in respect of insurance claims arising after the proceedings had started.
" the picture is confused: judges appear not to agree with one another."
"[20] Mr Millett's primary proposition remains, however, that no amendment can be made to introduce a cause of action arising out of facts occurring subsequent to the commencement of proceedings, where at the date of their commencement no cause of action existed so that the claim as originally issue was 'incurably bad'. He relied upon Roban Jig & Tool Co Ltd v Taylor [1979] FSR 130. There the plaintiffs commenced proceedings in August 1995 as owners of the copyright in certain drawings, in which the judge held (on a summons to strike out the claim) that the pleadings contained no shadow of a suggestion that the plaintiffs had either a legal or any equitable title. Before striking out the claim relating to these drawings, the judge considered whether the defect was one which could be cured if the plaintiffs took an assignment of the copyright from the individuals owning the copyright, and then sought to amend. He concluded that it could not be so cured, after referring to Eshelby v Federated European Bank [1932] KB 254 and 423. On appeal, his decision was upheld. Before the Court of Appeal, reference was evidently made to specific assignments in 1977, on which it was now suggested that the plaintiffs could and should be allowed to rely by way of amendment: see per Bridge LJ at p. 143. Bridge LJ referred to Lord Denning MR's statement in Alfred C Toepfer v Peter Cremer [1975] 2 LI Rep 118 at p. 125, that the rule against allowing amendments to a claim to plead a subsequently arising claim is one of practice, not law, and can be departed from when the justice of the case required. Lord Denning went on to refer to the everyday practice of giving judgment for mesne profits, interest or loss of earnings arising post-writ. Bridge LJ recognised that 'those departures in practice from the absolute rigour of the rule that a plaintiff cannot recover on a cause of action which accrued only after the writ was issued were the daily practice of the court'. But he went on to say that nothing 'could possibly lead to the conclusion that it was appropriate to allow a plaintiff to amend so as to introduce a fact giving him a cause of action when at the time when the writ was issued he had no cause of action at all'.
[21] In Vax Appliances Ltd v Hoover plc [1990] RPC 656, the claim was for infringement of a patent relating to a cleaning head. The defendants counterclaimed for revocation of the patent. Later, they sought to amend to seek a declaration that a new cleaning head that they had by now developed did not infringe the patent. This represented a cause of action that did not exist at the date when the original counterclaim was made. Mummery J allowed the amendment. He distinguished Roban Jig as a case where the original claim was 'incurably bad', and pointed out that, since the decision in Eshelby, there had been two changes: first, the doctrine of 'relator back' has been disapproved in Liff v Peasley [1980] 1 WLR 781 and Ketteman v Hansel Properties Ltd [1987] AC 189; second, RSC, O. 18, r. 9 gave a more general power to amend to include in a pleading matters arising since the date of the pleading. I interpose to say that that power was however subject to RSC, O. 18, r. 15(2), precluding a plaintiff from raising in his statement of claim any cause of action which was not mentioned in the writ or did not arise from the same or related facts. Mummery J pointed out that the matters sought to be introduced were 'not a wholly new cause of action'."
"I agree we are bound by the decision of this court in Hendry v Chartsearch Ltd [1998] CLC 1,382. There is no absolute rule of law or practice which precludes an amendment to rely on a cause of action which has arisen after the commencement of the proceedings in circumstances where (but for the amendment) the claim would fail. The court has a discretion whether or not to allow the amendment in such a case; a discretion which is to be exercised as justice requires." [my emphasis]
"In accordance with modern practice generally, the court has a general discretion which should not be restricted by hard-and-fast rules of practice, if not of law, such as that which is suggested here. The judge therefore was wrong to consider that the court had no power to give leave to make the re-amendment."
"I do not find in the rules or in the cases any absolute rule against granting leave to introduce a new cause of action which has arisen since the date of the writ or the relevant pleading. This is not a case like Roban Jig & Tool where the plaintiff has no cause of action at all at the date of the writ and the plaintiff had to rely on a title to copyright which he had acquired after the writ was issued; in that type of case the writ is incurably bad. It is not capable of being made good by amendment, since it is not a case of adding or substituting a new cause of action by amendment. There was no cause of action at the date of the service of the counterclaim. The cause of action was for the revocation of the patent. What the defendants wish to do is to add an alternative claim for a declaration of non-infringement, which the court can grant pursuant to its statutory powers under section 71 of the Patents Act 1977. Nor is this a case like Eshelby, where the amendment had to be made to the writ which, by reason of the application of the "relation back" doctrine, meant that the writ would pre-date the cause of action. Since Eshelby, Lord Brandon's comments in the cases I have mentioned make it clear that the addition of a new cause of action does not related (sic) to the writ or pleading in question; it dates only from the time when the amendment is made. It is also clear from the provisions of Order 18, rule 9, which are in a different from the equivalent provisions which were in force at the time when the Eshelby case was decided, that there is power to include in a pleading matters which have arisen since the date of the pleading. Further, in my view, the matters sought to be introduced are not a wholly new cause of action."
i) Where a new defendant is added the normal position is that the claim against him will date from the time he is joined and not from the date the action was begun;
ii) There is no reason in principle why a different rule should apply to an application to add a new cause of action.
iii) The doctrine of relation back will only be a relevant consideration if the other party's position will be prejudiced if the new claim takes effect earlier than the date on which permission to amend was granted.
"As I understand the position, following Ketterman, the courts adopt, as always, a pragmatic approach. A new party joining the action is entitled to look at as though the action were started on the day he joined and the court might insist that that is recorded as a condition of permission to amend. So also with a new cause of action: it starts from the date it is first made. But if there is an existing claim which needs amendment then the amendment will relate back so that the claim begins as though in its amended form from the date when the pleading in question was first delivered. These simple rules produce no difficulty. In respect of any amendment, the court is entitled to impose such conditions as it thinks fit, including, I think, conditions as to the date from which the proposed amendment is to take effect. The doctrine of relation back does not apply inflexibly, the court can adjust its operation to achieve the overriding objectives."
"A statement of claim shall not contain any allegation or claim in respect of a cause of action unless that cause of action is mentioned in the writ or arose from facts which are the same as, or include, or form part of, facts giving rise to a cause of action so mentioned; but, subject to that, a plaintiff may in his statement of claim alter, modify or extend any claim made by him in the indorsement of the writ without amending the indorsement." [my emphasis]
i) There is nothing in the CPR or the general law that prevents a party adding a new cause of action to a claim subject to different considerations applying in cases of 'incurable nullity' and in cases where limitation is an issue (by virtue of the Limitation Act). In the case of the latter, s.35 of the Limitation Act 1980 and CPR 17.4 apply.ii) The CPR encourages the parties to resolve all the issues between them in one claim and this accords with the approach set out in the overriding objective. This is not a requirement of the CPR but the court will lean in favour of adding claims rather than requiring an additional claim to be issued where possible.
Where the two exceptions referred to in paragraph i) and ii) do not apply;
iii) In cases where permission to amend is granted to add a cause of action that existed at the date the claim was issued, in non-limitation cases, it will normally be related back to the date the claim was issued and the claim will be treated as having included the additional claims as from the date of issue. There may be circumstances where this is not appropriate and the court may grant permission to amend on terms as to the date the added claims took effect. This might be relevant, for example, to interest and costs.
iv) The court's power to permit amendments where new claims are being added, as Morrison J observed in British Credit Trust Holdings, allows the court to impose conditions when granting permission to amend such as to make it clear, in appropriate cases, that the amendment takes effect upon the date of the order or such earlier date as the court specifies.
v) To my mind, and perhaps controversially, the doctrine or rule of relation back is no more than a rule of thumb, save where it finds statutory force in s.35 of the Limitation Act 1980. In the vast majority of cases it is convenient that a claim is treated as including all the amendments as if they were included as at the date of issue of the claim. It is, however, not an essential or necessary effect of an amendment and the court may grant permission to achieve a different outcome.
vi) I would only add that it is plainly preferable for a claimant to include all the claims it wishes to pursue in the claim when issued and there may be many cases where it is more appropriate for additional claims to be made by issuing a new claim. It does not follow that simply because the court has power to permit an amendment adding a new claim, it will necessarily exercise its discretion to do so. As will all such decisions, the provisions of the overriding objective are paramount.
Conclusion